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Page added on December 21, 2016
Saudi Arabia Considers Rise in Retail Fuel Prices in 2017
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Price increase to be announced before the end of the year
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Kingdom pursuing plan to cut dependence on oil revenue
Saudi Arabia is considering increasing retail gasoline and diesel prices in 2017 for the second year in a row, as the world’s top crude exporter pursues a plan to cut its dependence on oil revenue, according to a person familiar with the matter.
The rise in domestic fuel prices is expected to be announced before the end of the year, according to the person, who asked not to be identified because the plan isn’t public.
The government is looking into two scenarios for the hike: either linking local fuel prices to benchmark oil prices or to the average of gasoline and diesel fuel prices on the international market, the person said. Media officials at the energy ministry in Riyadh weren’t immediately available for comment.
Saudi Arabia, the Middle East’s biggest economy, is pursuing a plan to rein in spending and reduce dependence on energy after a two-year slump in oil prices. Last year, it took the unprecedented step of reducing fuel subsidies and raising retail gasoline prices by about 50 percent. The kingdom, which led a global effort to curb crude output to shore up oil prices, has also said it expects to sell stakes in state-owned entities, including Saudi Arabian Oil Co., known as Aramco. The price of Brent crude, the global benchmark, has jumped 49 percent this year.
“This is something the Saudi government seems committed to carry out in order to rationalize the domestic demand versus the loss in income from sales of subsidized fuel,” said Mohamed Ramady, a London-based independent analyst and a former professor of economics at King Fahd University of Petroleum and Minerals. “But it’s imperative that poorer sections of society are shielded through a system of well-managed rebates.”
On Dec. 28, 2015, Saudi Arabia announced that it raised retail gasoline prices to 0.75 riyals (20 cents) per liter from 0.45 riyals per liter for 91-octane fuel, and 0.9 riyals per liter from 0.6 riyals per liter for 95-octane grade. The government also increased diesel, natural gas, ethane, diesel, kerosene, electricity and water prices as part of the government’s five-year plan to reduce subsidies.
8 Comments on "Saudi Arabia Considers Rise in Retail Fuel Prices in 2017"
Truth Has A Liberal Bias on Wed, 21st Dec 2016 3:21 pm
I can’t wait until Saudi Arabia fucking trainerecks!
joe on Wed, 21st Dec 2016 3:57 pm
Truth, Im not one to hate, but I fuuking hate Saudi Arabia and its ruling class of Islamo Facist hate-death Cultists. They exist literally because they give handouts to all natives, and they import immigrants to do all the work and give them no rights at all. Its kinda like some of Trumps friends dream come true.
Rationalising such a messed up oilistan and means putting millions to work in a country that has NOTHING other than oil, its impossible. As oil demand flattens, Saudi will get poorer and poorer, one they theyll implode. I hope Trump fracks like mad and soon the fall in demand for Saudi oil might see the bombed out kids from Yemen take some much deserved revenge.
Kenz300 on Thu, 22nd Dec 2016 10:25 am
It is time to end all subsidies for fossil fuels.
Climate change is real. It will be the defining issue of our lives.
Sissyfuss on Fri, 23rd Dec 2016 8:40 am
Kenz it will be the declining issue of our lives.
tk on Fri, 23rd Dec 2016 9:21 pm
“As Ghawar goes, the world goes”
– Matthew Simmons (If I recall that correctly)
Happy holidays
Cloggie on Sat, 24th Dec 2016 12:08 am
In the North Sea alone there are thousands Ghawars worth of coal.
Simmons is so 2000.
Apneaman on Sat, 24th Dec 2016 1:14 am
North sea coal gasification.
That’s clogtards euro version of “trillions of barrels of
Kerogenoil .”“Any day now” “you’ll see”.
It’s the dipshit energy card desperate contraian fuck heads play when they got nothing else.
Cloggie on Sat, 24th Dec 2016 2:55 am
Friday the “cancer monkey” from the Alberta tar sand fields has yet to understand that I only say that we should use just enough of that stuff to get our 100% (or 95%) renewable energy society going and then close the UCG operation down.
But Friday the nihilist is completely uninterested in any solution whatsoever. He prefers to gloat and comment how the world will come to an end to see 7 billion lives to become just as f* up as his own.